Haroon Bhorat

Reposted by: Haroon Bhorat

Reposted by: Haroon Bhorat, Richard S.J. Tol

Florian Ederer

@florianederer.bsky.social

How can tariffs improve welfare? Your country needs market power.

A quick explainer below 👇🏻

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Reposted by: Haroon Bhorat, Paul D. Grauwe

Reposted by: Haroon Bhorat

SALDRU

@saldru.bsky.social

HAROON BHORAT (@haroonbhorat.bsky.social, our colleague at @dpru-uct.bsky.social): Getting the numbers right on the informal economy

www.businesslive.co.za/bd/opinion/2...

HAROON BHORAT: Getting the numbers right on the informal economy

It is wrong to assume that what is true at the local level must translate to a 1:1 relationship at national level

www.businesslive.co.za

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Reposted by: Haroon Bhorat

by Haroon Bhorat

by César A. Hidalgo — Reposted by: Haroon Bhorat

Reposted by: Haroon Bhorat

by Justin Sandefur — Reposted by: Haroon Bhorat

Reposted by: Haroon Bhorat

by César A. Hidalgo — Reposted by: Haroon Bhorat

by Dani Rodrik — Reposted by: Haroon Bhorat

Dani Rodrik

@drodrik.bsky.social

Trump's claim that foreigners will pay the tariffs in full. They assume a small but positive passthrough indicating that domestic prices will rise by 25% of the tariffs.

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by Dani Rodrik — Reposted by: Haroon Bhorat

Dani Rodrik

@drodrik.bsky.social

But of course this equation and calculation are a travesty. It is a silly attempt to provide a veneer of respectability to a nonsensical, arbitrary, and ad hoc political decision. Whoever produced this (and indeed all the economists working for Trump) should be embarrassed of themselves.

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by Dani Rodrik — Reposted by: Haroon Bhorat

Dani Rodrik

@drodrik.bsky.social

Their use of elasticity is inconsistent and would not pass an undergraduate test (where is the price effect on the value of imports?) The assumption that exports will be unaffected is crazy. Note also that their (necessary) assumption that domestic import prices will rise contradicts +

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by Dani Rodrik — Reposted by: Haroon Bhorat, Grégory Claeys, Mark E. Schaffer , and 3 more Haroon Bhorat, Grégory Claeys, Mark E. Schaffer, Michał Myck, Peter Tillmann, Ferdinand Fichtner

Dani Rodrik

@drodrik.bsky.social

This is what Trump's "economists" say about how they calculated the "reciprocal" tariffs. Don[t be fooled by the equation. They commit countless crimes against economics. ustr.gov/issue-areas/... +

Reciprocal Tariff Calculations

Executive Summary Reciprocal tariffs are calculated as the tariff rate necessary to balance bilateral trade deficits between the U.S. and each of our trading partners. This calculation assumes that pe...

ustr.gov

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by Dani Rodrik — Reposted by: Haroon Bhorat

Dani Rodrik

@drodrik.bsky.social

Trump’s new tariffs are an abomination. It’s not just the economics that is backwards. It’s also the geopolitics/national security angle. Countries have always used trade for geopolitical reasons. But it’s by opening your market to other nations that you get them to align with you, not by closing.

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Reposted by: Haroon Bhorat

References

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